Analysis of Lopez, Peon, & Ordas, (2005) Article

Present a written analysis of the evidence offered in the journal article to support the view that organizational learning contributes positively both to innovation and competitiveness and to economic/financial results. Assess how organizational learning causes increased organizational performance.

How successful is the article in demonstrating the relationship between organizational learning and business performance? Do you agree with this view? Explain your answer with practical examples.

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The goal of the Lopez, Peon, and Ordas (2005) article is to provide evidence of a link between organizational learning and organizational performance. Learning organizations are better able to recognize the need to change, adapt to changing markets, and successful institute strategic leadership. Strategic leadership is the development of a vision of the future organization (Brown & Starkey, 2000; Wright et al., 2004). If leaders are not able to realistically approach learning and anticipate all possible scenarios, the organization will become static. So, how should the organization counteract this common blunder? Many scholars believe organizational learning is a solution.

Lopez, Peon, and Ordas (2005) identify four separate stages of organizational learning in their review of the relevant literature:

1. The attainment of knowledge either from external sources or through internal development initiatives

2. The distribution of knowledge to the various members of the organization

3. The interpretation of knowledge, where members share their various understandings of the knowledge in an attempt to coordinate decision-making

4. The storage of knowledge in the organizational memory or the assimilation of the knowledge into policy, procedure, or other systems

While organizational learning can be embedded in the policy, procedure, and products of a business, it is also social in nature (Lopez, Peon, and Ordas, 2005). Knowledge is acquired, shared, and stored by the human capital of an organization. In today's fluctuating global market, customers, suppliers, and other forces act on the organization to encourage constant advancement in products and services. This is the basis of Lopez, Peon, Ordas (2005) hypothesis: learning organizations are better performers. The authors attempt to go beyond traditional studies that only attempt to positively link organizational learning with financial gain. As well as attempting to measure a link between organizational learning and financial performance, the authors of this article attempt to prove a link between organizational learning and innovation and competitiveness. Further, the authors contend that innovation and competitiveness promote financial gain.

The authors mailed questionnaires to a sizable number of large Spanish firms and conducted interviews with a selection of top managers among the firms. A total of 215 questionnaires were returned. This is a very small response rate for the number of firms surveyed. While the authors claim ...

Solution Summary

This solution provides an analysis of the Lopez, Peon, & Ordas (2005) article "Organizational learning as a determing factor in business performance." This article provides evidence of a link between organizational learning and overall business performance.